Blame Them For Your Empty Wallet

Since PennyMac buys the loans at a discount the company is able to lower interest rates on them and still pull a profit. Its defenders say that the business helps embattled homeowners.

But critics cry foul over the fact that those who helped take aggressive subprime lending mainstream should be rewarded as the resulting financial crisis reaped havoc across the greater global economy.

“It’s sort of like the arsonist who sets fire to the house and then buys up the charred remains and resells it,” Margo Saunders, a lawyer and advocate against abusive lending practices told the Times.